The U.S. dollar slipped against the EUR and CHF Wednesday, erasing some early morning gains after encouraging U.S. economic data sent traders into riskier, higher-yielding assets. By yesterday's close, the greenback had fallen against the EUR, pushing the oft-traded currency pair to 1.3600. The dollar experienced similar behavior against the Swiss franc, closing at 0.9580.
The producer price index (PPI) rose 0.8% last month, nearly in line with the consensus forecast of 0.9%. The manufacturing sector has been steadily growing in recent months, indicating the pace of economic recovery could be picking up.
Yesterday's economic reports bolstered U.S. Treasury yields, but higher yields weren't enough of an incentive to get the active market participants to continue buying dollars. Instead, traders saw the upbeat news as a reason to search out riskier assets. U.S. stocks and crude oil were among the biggest beneficiaries of increased risk demand.
Looking ahead to today, the most important economic indicators scheduled to be released from the U.S. is the CPI figures at 13:30 GMT. Traders will be paying close attention to today's announcement as a stronger than expected result may continue to boost risk appetite in the short-term.